us-nm/stat
NMSA 1978, § 7-1-26 — Disputing liabilities; claim for rebate or refund
A.
A person who believes that an amount of tax has been paid by or withheld from
that person in excess of that for which the person was liable, who has been denied a
rebate claimed or who claims a prior right to property in the possession of the
department pursuant to a levy made pursuant to the authority of Sections 7-1-31
through 7-1-34 NMSA 1978 may claim a refund by directing to the secretary, within the
time limitations provided by Subsections F and G of this section, a written claim for
refund that, except as provided in Subsection K of this section, includes:
(1) the taxpayer's name, address and identification number;
(2) the type of tax for which a refund is being claimed, the rebate denied or
the property levied upon;
(3) the sum of money or other property being claimed;
(4) with respect to a refund, the period for which overpayment was made;
(5) a brief statement of the facts and the law on which the claim is based,
which may be referred to as the "basis for the refund", which may include
documentation that substantiates the written claim and supports the taxpayer's basis for
the refund; and
(6) if applicable, a copy of an amended return for each tax period for which
the refund is claimed.
B.
A claim for refund that meets the requirements of Subsection A of this section
and that is filed within the time limitations provided by Subsections F and G of this
section is deemed to be properly before the department for consideration, regardless of
whether the department requests additional documentation after receipt of the claim for
refund.
C.
If the department requests additional relevant documentation from a taxpayer
who has submitted a claim for refund, the claim for refund shall not be considered
incomplete provided the taxpayer submits sufficient information for the department to
make a determination.
D.
The secretary or the secretary's delegate may allow the claim in whole or in part
or may deny the claim. If the:
(1) claim is denied in whole or in part in writing, the person shall not refile the
denied claim, but the person, within ninety days after either the mailing or delivery of the
denial of all or any part of the claim, may elect to pursue only one of the remedies
provided in Subsection E of this section; and
(2) department has neither granted nor denied any portion of a complete
claim for refund within one hundred eighty days after the claim was mailed or otherwise
delivered to the department, the person may elect to treat the claim as denied and elect
to pursue only one of the remedies provided in Subsection E of this section.
E.
A person may elect to pursue only one of the remedies provided in this
subsection. A person who timely pursues more than one remedy is deemed to have
elected the first. The person may:
(1) direct to the secretary, pursuant to the provisions of Section 7-1-24 NMSA
1978, a written protest that sets forth:
(a) the circumstances of: 1) an alleged overpayment; 2) a denied rebate; or
3) a denial of a prior right to property levied upon by the department;
(b) an allegation that, because of that overpayment or denial, the state is
indebted to the taxpayer for a specified amount, including any allowed interest, or for
the property;
(c) a demand for the refund to the taxpayer of that amount or that property;
and
(d) a recitation of the facts of the claim for refund; or
(2) commence a civil action in the district court for Santa Fe county by filing a
complaint setting forth the circumstance of the claimed overpayment, denied rebate or
denial of a prior right to property levied upon by the department alleging that on account
thereof the state is indebted to the plaintiff in the amount or property stated, together
with any interest allowable, demanding the refund to the plaintiff of that amount or
property and reciting the facts of the claim for refund. The plaintiff or the secretary may
appeal from any final decision or order of the district court to the court of appeals.
F.
Except as otherwise provided in Subsection G of this section, a refund of any
amount of overpaid tax, penalty or interest may be allowed or made to a person if a
claim is properly filed:
(1) only within three years after the end of the calendar year in which the
applicable event occurs:
(a) in the case of tax paid with an original or amended state return, the date
the related tax was originally due;
(b) in the case of tax paid in response to an assessment by the department
pursuant to Section 7-1-17 NMSA 1978, the date the tax was paid;
(c) in the case of tax with respect to which a net-negative federal adjustment,
as that term is used in Section 7-1-13 NMSA 1978, relates, the final determination date
of that federal adjustment, as provided in Section 7-1-13 NMSA 1978;
(d) the final determination of value occurs with respect to any overpayment
that resulted from a disapproval by any agency of the United States or the state of New
Mexico or any court of increase in value of a product subject to taxation pursuant to the
Oil and Gas Severance Tax Act [Chapter 7, Article 29 NMSA 1978], the Oil and Gas
Conservation Tax Act [Chapter 7, Article 30 NMSA 1978], the Oil and Gas Emergency
School Tax Act [Chapter 7, Article 31 NMSA 1978], the Oil and Gas Ad Valorem
Production Tax Act [Chapter 7, Article 32 NMSA 1978] or the Natural Gas Processors
Tax Act [Chapter 7, Article 33 NMSA 1978]; or
(e) in the case of a claim related to property taken by levy, the date the
property was levied upon as provided in the Tax Administration Act;
(2) in the case of a taxpayer under audit by the department who has signed a
waiver of the limitation on assessments pursuant to Subsection F of Section 7-1-18
NMSA 1978, only for a refund of the same tax paid for the same period for which the
waiver was given, and only until a date one year after the later of the date of the mailing
of an assessment issued pursuant to the audit, the date of the mailing of final audit
findings to the taxpayer or the date a proceeding is begun in court by the department
with respect to the same tax and the same period;
(3) in the case of a payment of an amount of tax not made within three years
of the end of the calendar year in which the original due date of the tax or date of the
assessment of the department occurred, only for a claim for refund of that amount of tax
and only within one year of the date on which the tax was paid; or
(4) in the case of a taxpayer who has been assessed a tax pursuant to
Subsection B, C or D of Section 7-1-18 NMSA 1978 and an assessment that applies to
a period ending at least three years prior to the beginning of the year in which the
assessment was made, only for a refund for the same tax for the period of the
assessment or for any period following that period within one year of the date of the
assessment unless a longer period for claiming a refund is provided in this section.
G.
No refund shall be allowed or made to a person claiming a refund of gasoline tax
pursuant to Section 7-13-11 NMSA 1978 unless notice of the destruction of the gasoline
was given to the department within thirty days of the actual destruction and the claim for
refund is made within six months of the date of destruction. No refund shall be allowed
or made to a person claiming a refund of gasoline tax pursuant to Section 7-13-17
NMSA 1978 unless the refund is claimed within six months of the date of purchase of
the gasoline and the gasoline has been used at the time the claim for refund is made.
H.
If, as a result of an audit by the department or a managed audit covering multiple
periods, an overpayment of tax is found in any period under the audit and if the taxpayer
files a claim for refund for the overpayments identified in the audit, that overpayment
may be credited against an underpayment of the same tax found in another period
under audit pursuant to Section 7-1-29 NMSA 1978.
I.
A refund of tax paid under any tax or tax act administered pursuant to Subsection
B of Section 7-1-2 NMSA 1978 may be made, at the discretion of the department, in the
form of credit against future tax payments if future tax liabilities in an amount at least
equal to the credit amount reasonably may be expected to become due.
J.
For the purposes of this section, "oil and gas tax return" means a return reporting
tax due with respect to oil, natural gas, liquid hydrocarbons, carbon dioxide, helium or
nonhydrocarbon gas pursuant to the Oil and Gas Severance Tax Act, the Oil and Gas
Conservation Tax Act, the Oil and Gas Emergency School Tax Act, the Oil and Gas Ad
Valorem Production Tax Act, the Natural Gas Processors Tax Act or the Oil and Gas
Production Equipment Ad Valorem Tax Act [Chapter 7, Article 34 NMSA 1978].
K.
The filing of a fully completed original income tax return, corporate income tax
return, corporate income and franchise tax return, estate tax return or annual insurance
premium tax return that shows a balance due the taxpayer or a fully completed
amended income tax return, an amended corporate income tax return, an amended
corporate income and franchise tax return, an amended estate tax return, an amended
oil and gas tax return or an amended insurance premium tax return that shows a lesser
tax liability than the original return constitutes the filing of a claim for refund for the
difference in tax due shown on the original and amended returns.
L.
The department may allow a completed return and an amended return to
constitute the filing of a claim for refund.
M.
In no case may a refund be claimed if the related federal adjustment is taken into
account by a partnership in the partnership's tax return for the adjustment year and
allocated to the partners in a manner similar to other partnership tax items.
Source: official text